The company is also expected to add the technology, which is used to transmit data wirelessly over short distances, to the next version of its iPhone, the paper reported.               

The smartwatch will be offered in two sizes and will have sensors to track and monitor health, people familiar with the device told the paper.
               
However, the smartwatch is unlikely to go on sale this year, the people said.
               
NFC will allow users to make payments for goods and services with credit cards stored with Apple's iTunes digital content store, the report said.
               
Tech enthusiasts are awaiting the launch of Apple's smartwatch. Reports also say that Apple has obtained the trademark for the name 'iWatch' in several countries.

Apple Inc has send formal invitation to media for a special event to be held in California on September 9, where the company is expected to unveil the latest versions of its best-selling smartphones.

Apple iPhone 6 to have 'Mobile Wallet' feature?

Apple Inc is likely to introduce a ‘Mobile Wallet’ feature in its much-awaited iPhone 6 allow users to make secure payments in a store with the touch of a finger.

The agreement includes participation by Visa Inc., MasterCard Inc and American Express Co and will be announced September 9 along with unveiling of the next iPhone, according to the source.

The new iPhone will simplify mobile payment by including a special communication chip, along with a fingerprint recognition reader that debuted on the most recent iPhone, the source said.